Audit 301491

Finding Number: 2023-001 Program Name/Assistance Listing Title: Substance Abuse Block Grant Federal Assistance Listing No: 93.959 Federal Agency: U.S. Department of Health and Human Services Federal Award Identification: Unknown Pass-Through Entity Number: 2200549 Applicable Pass-through Entity: Substance Abuse and Mental Health Services Administration Type of Finding: Significant Deficiency Compliance Requirement: Reporting Criteria: According to Section 200.303 of the Uniform Guidance, a non-federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. LIMA UMADAOP needs to establish and document their policies and procedures to meet the control objectives outlined in 2 CFR section 200.1. One of the objectives focuses on ensuring that transactions are accurately recorded and accounted for, enabling the accurate preparation of dependable financial statements and federal reports. Condition: After examining the Schedule of Expenditures of Federal Awards (SEFA) in the current year, it was observed that there was a significant misstatement in the reported expenditures from the previous year. Cause of Condition: The organization is small size and relies heavily on an external accountant to prepare the financial statement. Effect: Monitoring of the federal expenditures is not formal throughout the year and reconciliation is only done at year-end. Informal monitoring of expenditure throughout the year and reconciliation at year-end does not permits timely reconciliation for the management to verify accuracy and completeness in reconciling items which may lead to misstatement in financial statements and federal reports. Questioned Cost: $43,340 Context: Under ALN 93.959, the organization received a grant of $220,907 for OHIO MHAS – Adult Treatment AUD covering the period from October 1, 2021, through March 31, 2024. This grant was included in the schedule of federal expenditures for the fiscal years ending June 30, 2023, and June 30, 2022, with reported amounts of $131,774 and $132,473, respectively. However, the figures for 2022 represented the drawdown amount instead of the actual expenditures, leading to an overstatement of $43,340 in the schedule of expenditures of federal awards. Our testing of expenditures did not reveal any unallowable costs, inadequate documentation, or unreasonable costs. However, the 2022 schedule of expenditures of federal awards was misstated, resulting in an excess of expenditures over the total award, leading to a questioned cost of $43,340. Recommendations:We suggest that Management engage in quarterly monitoring of their federal expenditures. This proactive strategy will aid management in preparing the Schedule of Expenditures of Federal Awards (SEFA) at year-end, as the amounts will have undergone partial scrutiny for completeness and accuracy throughout the year. Views of Responsible Official: See separate page for the Corrective Action Plan.

Finding Number: 2023-001 Program Name/Assistance Listing Title: Substance Abuse Block Grant Federal Assistance Listing No: 93.959 Federal Agency: U.S. Department of Health and Human Services Federal Award Identification: Unknown Pass-Through Entity Number: 2200549 Applicable Pass-through Entity: Substance Abuse and Mental Health Services Administration Type of Finding: Significant Deficiency Compliance Requirement: Reporting Criteria: According to Section 200.303 of the Uniform Guidance, a non-federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. LIMA UMADAOP needs to establish and document their policies and procedures to meet the control objectives outlined in 2 CFR section 200.1. One of the objectives focuses on ensuring that transactions are accurately recorded and accounted for, enabling the accurate preparation of dependable financial statements and federal reports. Condition: After examining the Schedule of Expenditures of Federal Awards (SEFA) in the current year, it was observed that there was a significant misstatement in the reported expenditures from the previous year. Cause of Condition: The organization is small size and relies heavily on an external accountant to prepare the financial statement. Effect: Monitoring of the federal expenditures is not formal throughout the year and reconciliation is only done at year-end. Informal monitoring of expenditure throughout the year and reconciliation at year-end does not permits timely reconciliation for the management to verify accuracy and completeness in reconciling items which may lead to misstatement in financial statements and federal reports. Questioned Cost: $43,340 Context: Under ALN 93.959, the organization received a grant of $220,907 for OHIO MHAS – Adult Treatment AUD covering the period from October 1, 2021, through March 31, 2024. This grant was included in the schedule of federal expenditures for the fiscal years ending June 30, 2023, and June 30, 2022, with reported amounts of $131,774 and $132,473, respectively. However, the figures for 2022 represented the drawdown amount instead of the actual expenditures, leading to an overstatement of $43,340 in the schedule of expenditures of federal awards. Our testing of expenditures did not reveal any unallowable costs, inadequate documentation, or unreasonable costs. However, the 2022 schedule of expenditures of federal awards was misstated, resulting in an excess of expenditures over the total award, leading to a questioned cost of $43,340. Recommendations:We suggest that Management engage in quarterly monitoring of their federal expenditures. This proactive strategy will aid management in preparing the Schedule of Expenditures of Federal Awards (SEFA) at year-end, as the amounts will have undergone partial scrutiny for completeness and accuracy throughout the year. Views of Responsible Official: See separate page for the Corrective Action Plan.